US Markets

Pre-Markets Off Early-Morning Bottoms: F, BP & More

Tuesday, August 4, 2020

Pre-markets are lower today, but off early morning bottoms. We may be seeing trading take a breather following a string of positive trading days, as per normal conditions in this recovery bull market. The S&P 500 closed Monday at its highest level since February 21, before COVID-19 was believed to have claimed its first American victim. The Nasdaq keeps busting out to new all-time highs, currently on a 4-day win streak.

June Home Prices posted their highest levels in 7 years: +4.9% year over year, following the also good +4.1% reported for May. This points to demand in the housing industry, with static economic movement for the previous several months joined with lack of inventory/availability. Surprisingly, Philadelphia saw an 8.4% jump in housing prices — this has not been recognized as a high-growth region (although we may take into account New Yorkers leaving based on the devastating toll COVID took on the city and state this past spring).

Ford Motor Co. F has announced a change at the helm: President and CEO Jim Hackett will be retiring October 1st, to be replaced by current COO Jim Farley. Hackett took over for Mark Fields in May 2017, but has not ignited many of the changes at the auto giant — electric vehicles, autonomous driving, etc. — that were called for at the time. Will Farley’s vision take the company where it needs to go? Investors think so: the stock is up 3% on the news.

Q2 Earnings at a Glance

BP BP
missed estimates on both top and bottom lines in its Q2 report this morning, posting a loss of $1.98 per ADS as opposed to -99 cents expected. Revenues of $31.19 billion was well off the pace of $42.23 billion in the Zacks consensus. The quarter was devastating for oil prices, averaging less than $23 per barrel. Yet shares are up 5.43% in early trading, though still down 39% year to date. For more on BP’s earnings, click here.

Electronic instrument manufacturer AMETEK AME topped expectations for both earnings and sales, with 84 cents per share beating the 72 cents expected (though down from $1.05 per share in the year-ago quarter). Revenues came in at $1.01 billion at the Zacks Rank #2 (Buy)-rated, beating consensus by 3.8%. Shares are down modestly year to date. For more on AME’s earnings, click here.

Aerospace components firm TransDigm TDG also took out its earnings consensus easily in its fiscal Q3 quarter, bringing in $1.54 per share versus 99 cents expected. This is down considerably from the year-ago $4.95 per share, but is nevertheless a sizable beat. Revenues topped expectations by 1.5% to $1.02 billion in the quarter. Shares are looking to bounce back on the good news; shares are down 22% year to date. For more on TDG’s earnings, click here.

Mark Vickery
Senior Editor

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